KARACHI, Jan 25: The pre-bid meeting for privatization of Pakistan State Oil (PSO) is likely to be held in the next two weeks as the government is anxious to sell-off the oil-marketing giant by early March, a source at the Privatization Commission (PC) told Dawn on Wednesday.

An official at the PSO headquarters in Karachi, who asked not to be named, confirmed that the potential bidders had completed their due-diligence exercise, which they had started in November and the PC had already issued letters to the parties for the pre-bid moot.

In order for a smooth flow of the transaction and to offer a clean balance sheet, the government was said to have settled pending issues with PSO including the outstanding dues.

The reasons that the PC had taken up a fast-track sell-off of PSO were several: The government needed to refurbish reserves, which had depleted from $13.5 billion to $11.5 billion. Analysts estimate that the government might be able to raise between $550 to $800 million from the sale of 51 per cent strategic stake in PSO with management control.

The government holds 54 per cent (direct and indirect) stake in the oil marketing company. Another plausible reason cited for taking up the PSO sale in right earnest was that in case of a glitch in the upcoming sell-off of Pakistan Steel Mills, the PSO could be quickly placed on the plate as was done in case of sale of the KESC, bypassing the PTCL privatisation that had stood mired in problems.

In the mid October, the PC Board had approved prequalification of seven bidders, out of

15 who had submitted statements of qualification for the oil-marketing company’s privatization.